Myers Industries has announced results for the first quarter ended March 31, 2017.
The company has reported net sales of $141.7 million, compared to $151.2 million in the first quarter of 2016. Gross profit margin decreased 230 basis points to 29.6 percent as compared to the prior year quarter, primarily due to lower sales volume and higher restructuring and manufacturing costs in the Material Handling Segment. Selling, general and administrative expenses declined by $3.9 million to $34.6 million, in the first quarter of 2017, with the improvement in expenses primarily attributable to lower compensation costs.
President and CEO Dave Banyard commented, “First quarter earnings were in line with our expectations, despite softer than expected demand in the auto aftermarket end-market. Net sales were down mid-single digits due to the decline in auto aftermarket as well as the expected continued weakness in agricultural end markets. Despite the lower sales volumes, we are executing well on our strategic initiatives. We have made solid progress with our niche market growth teams, and our strategic realignment to improve operating flexibility is well underway. Our continued focus on working capital and disciplined capital spending helped us generate strong free cash flow of $12.6 million during the quarter.”
2017 Outlook
The company continues to anticipate that total revenue will be flat on a constant currency basis in fiscal year 2017 as compared to the prior year. Capital expenditures are expected to be in the range of $10 million to $12 million, net interest expense in the range of $8 million to $9 million, depreciation and amortization in the range of $32 million to $34 million, and an effective tax rate of approximately 36 percent.
